Question:

Who pays for title insurance - is it the buyer or the seller?

Answer:

Whether the buyer or seller pays for title insurance depends on the county, not even on the state. Usually, though, the seller and buyer may split owner's title insurance premium and the buyer pays for lender's title policy. In some areas the buyer pays both. However, often this charge is open to negotiation despite the local custom.

What do closing attorneys say on who is paying for title insurance?

Some closing attorneys would use the title company they have business relationship with and split title charges between seller and buyer. If anyone would suggest using another title company, they are usually expected to cover title insurance fees.

Owner's policy is also called buyer's title insurance. The seller is typically not required to pay this cost. It is often assumed that the seller would cover title fees, but if they explicitly state that they don't want to and the buyer agrees on that kind of offer the seller doesn't have to contribute to title related charges.

In fact, title charges as many closing costs on a real estate transaction are negotiable. Homebuyers should be aware of that fact.

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